The alleged overbilling to Apple by some employees of Infosys BPO took place at the company’s Czech centre in Europe, say sources. Infosys BPO has two centres in the Czech Republic — Prague and Brno — though it is not clear where the financial impropriety took place.
Infosys BPO, with a global headcount of over 26,000, operates in fourteen countries with presence in the Americas, APAC & Australia and Europe, India being its largest centre. The Czech Republic, which falls in the East European region, is known for its specialised talent pool like data analytics and multiple language skills.
Sources said the BPO services being provided to Apple were not very large, unlike the IT services. The alleged overbilling to Apple was reportedly done by about half-a-dozen employees and, since then, their services have been terminated by the company. It is understood that the management came to know of these developments through the company’s whistleblower mechanism.
An email query sent to Infosys on the involvement of its Czech BPO centre remained unanswered at the time of going to press.
The matter first came to light with Infosys on Tuesday announcing that it will be sacking the chief financial officer (CFO) of its BPO unit, Abraham Mathews, for not complying with its code of conduct. BPO division CEO Gautam Thakkar will also be resigning taking moral responsibility. The IT services major had said in an earlier communication that there were certain non-material financial irregularities.
However, an anonymous mail sent to media houses on Wednesday alleged that over-billing was done to Infosys BPO customer — Apple — and raised questions regarding corporate governance, especially on internal control and disclosure measures.
Responding to these queries, an Infosys spokesperson on Wednesday in an e-mail statement said, “The financial irregularities are not material in nature and the company has already made required disclosures. The company has taken disciplinary action on employees. We will not be able to comment on client specific matters or on investigation as they are confidential in nature.”
The BPO business accounted for 6.3% of Infosys’ $2.2-billion revenue in the second quarter of FY15.